Bankrupt USA Possible? Our Arrogance And Irrational Economic Policies Make It Nearly Certain.

Greece is on the verge of bankruptcy and several other EU countries are not far behind. Three big problems there. First, their national debt is around 10% of the GDP. Also, approximately 10% of their citizens work for the government. And total cost to employers of unionized employees has grown dramatically.

Our national debt ratio in America is also around 10%. 8% of Americans worked in government in 2007. Since government employment has grown dramatically in the past two years, it's safe to say it's approaching 9% in America. Total cost of unionized employees has grown dramatically over the past 20 years. To assess whether the cost of unionized employees is causing economic problems, check which employers and states are in financial trouble and why.

The reason a large percentage of government workers is a problem for any economy is that government doesn't create wealth. It ONLY consumes wealth. The larger government becomes, the less economic resources are available to grow or sustain an economy. That black hole like sucking sound you hear is the health of our economy being sucked right into oblivion.

Financial commitments to unions in America (that the average American can't even dream of having) have put two of our biggest companies, GM and Chrysler, as well as many, many others in trouble. In fact, without major concessions by unions last year those auto companies would likely have folded. Several state governments are in danger of various defaults or even bankruptcy, the worst example being California with a mind-boggling $540 Billion of debt. Most of their financial burdens are financial concessions and obligations to unions that are completely unsustainable and totally irrational in retrospect.

America is in nearly as bad a condition financially and economically as several other countries that are on the verge of bankruptcy. Think it can't happen here? Wake up! It CAN! Our arrogance thinking it can't happen here will prevent us from doing what we need to do in order to prevent it. If we don't SOON shrink all governments by a large amount, reverse irrational surrender to union demands and reverse the trend toward astronomical debt our economy can and WILL collapse.